For Each of the Indicated Tax Penalties, Indicate the Appropriate

question 86

Multiple Choice

For each of the indicated tax penalties, indicate the appropriate taxpayer defense. A letter may be used more than once. Not all of the letters need be used.
-Preparer penalty for reckless conduct.

• A)Ignorance of the tax law
• B)Reasonable basis
• C)Reasonable cause
• D)Complexity of the tax law
• E)Substantial authority
• F)Disclosure on return

---

Definitions:

Model

A simplified representation or simulation of a system or phenomenon, often used to analyze behavior or make predictions.

Unknown Values

Data points or variables in research or calculations that are not known or are yet to be determined.

Forming Department

A specific section of a manufacturing or production facility where raw materials are shaped or formed into parts for further assembly or processing.

Solver

A software tool that finds the optimal solution to a mathematical model or equation, often used in optimization and decision-making processes.